Fifth National Microfinance Members Conference concludes with 9-point declaration

KATHMANDU: The Fifth National Microfinance Members Conference 2082 has concluded in Kathmandu, issuing a comprehensive nine-point declaration with a strong emphasis from speakers and stakeholders on effective implementation to drive Nepal’s socio-economic transformation.

Held over two days on Chaitra 8–9 (March 21–22, 2026 AD), the conference brought together microfinance members, professionals, policymakers, and stakeholders to deliberate on the future of Nepal’s microfinance sector, entrepreneurship, and financial inclusion.

Focus on Entrepreneurship, Youth Employment and Economic Transformation

The declaration’s first point underscores a commitment to promoting entrepreneurship under the slogan “Expand entrepreneurship, create self-employment for youth”, aiming to contribute to Nepal’s economic transformation.

Microfinance institutions and cooperatives have pledged to implement programs such as “earn while you learn” at school level, alongside skill-based training, business advisory services, and innovation promotion to encourage youth-led enterprises and self-employment opportunities.

Member-Centric Services and Responsible Finance

The second point highlights the need for microfinance employees to maintain dignified, transparent, and respectful engagement with members, ensuring services remain accountable and member-centric.

The declaration also emphasizes green finance initiatives, encouraging youth mobilization through the “Three Zero Club” concept—zero poverty, zero unemployment, and zero carbon emissions—to build a sustainable and self-reliant society.

Climate Action and Digital Transformation

Addressing climate change, the declaration commits each microfinance institution to promote at least one environmentally friendly village within its operational area, supporting green enterprises and sustainable production systems.

In line with global fintech trends, the conference stressed the need to digitize microfinance services, making them simpler, safer, and more accessible while enhancing digital literacy among members to expand access to modern financial systems.

Measuring Impact and Reviving Inactive Members

The declaration calls for developing impact measurement frameworks to evaluate the real economic and social transformation of members annually.

It also prioritizes reactivating inactive members through financial literacy programs, entrepreneurship development, and regular engagement, encouraging their participation in productive economic activities.

Warning Against Misleading Practices

Participants expressed concern over misleading narratives such as loan waivers and high-interest misconceptions, urging members—particularly women in vulnerable communities—not to be influenced by such activities. Community-level awareness campaigns will be strengthened to counter misinformation.

Commitment to Sectoral Reform and Collaboration

The final point stresses collective responsibility among microfinance institutions, cooperatives, employees, and members to address existing challenges. It also calls for policy-level coordination with government and regulators to resolve systemic issues through dialogue and collaboration.

Experts Stress Implementation Over Declaration

Speakers at the closing session emphasized that the declaration’s success depends on effective implementation rather than policy formulation alone.

Former Governor of Nepal Rastra Bank, Dipendra Bahadur Kshetri, praised the transformative role of microfinance in promoting entrepreneurship and self-reliance among low-income communities. He noted that unlike commercial banks, microfinance institutions reach the doorsteps of underserved populations, fulfilling critical financial needs.

However, he also cautioned about emerging challenges within the sector, urging stakeholders to remain vigilant and responsible.

Similarly, former NRB Governor Dr Bijay Nath Bhattarai highlighted non-performing loans (NPLs) as a growing concern, noting that the sector—serving around 6.4 million households through nearly 50 institutions—has seen NPLs rise to around 8%.

He stressed the importance of internal reform, governance, and institutional accountability, urging microfinance institutions to reduce reliance on external support and strengthen their operational frameworks. He further emphasized that the sector must evolve beyond lending and focus on entrepreneurship development and technological advancement.

Microfinance as a Social Movement

Conference Organizing Committee Chair Shankarman Shrestha described microfinance as a “heart-to-heart system”, rather than merely a financial mechanism, emphasizing its role in reaching underserved populations where traditional banking fails.

Member Secretary Bechan Giri stated that the conference has reinforced microfinance as not just a financial service, but a broader social empowerment movement.

The event concluded with the honoring of outstanding employees and institutions, recognizing contributions to Nepal’s microfinance sector.

Strategic Importance for Nepal’s Economy

The conference outcomes are expected to influence Nepal’s broader financial inclusion strategy, SME development, poverty reduction, and grassroots entrepreneurship ecosystem, particularly as the country seeks sustainable and inclusive economic growth.